Net present value with different compound increasing factors

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Reference no: EM131625427

Investment has initial cost of $1000 when t=0. The future cash flows are paid at the year's end starting with $300 at t=1 and increase by 5% each year until final payment at t= 5. Assume an interest rate of 10%.

a) Calculate net present value

b) Calculate net present value with different compound increasing factors: -5%, 0%, 5%, 10%, 15%

Reference no: EM131625427

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